AGM Industries Inc. (ABM) stock prices were up by 0.064% as of the market closing on September 8th, 2021. This brought the price per share up to USD$47.25 at the end of the trading day. Subsequent premarket fluctuations saw the stock dip by 4.76%, bringing it down to USD$45.00.
ABM Stock’s Revenue Reports
The third quarter of fiscal 2021 saw ABM stock report USD$1.54 million in revenue. This is a 10.7% increase from the numbers, as compared to the prior-year quarter. Gradual re-occupancy of offices and the return of fans to sports venues drove Business and Industry revenue. Aviation revenue was up by more than 50%, with the operating margin for the segment surpassing pre-pandemic levels. This is a result of an increase in domestic air travel, as well as a favorable mix of the airport business. Technical Solution’s revenues and operating income were up by double digits. The increase reflected effective execution on an increasing backlog of energy-efficient projects, as well as greater access to client sites. Demand for disinfection-related services remained elevated, resulting in revenue growth and increased operating profitability.
GAAP Net Loss
ABM stock reported a GAAP net loss from continuing operations in the amount of USD$13.7 million. This represented a GAAP net loss of USD$0.20 per diluted share. These figures include a USD$1.24 per share reserve to resolve outstanding litigation. GAAP net income from continuing operations came out to USD$56 million in the prior-year quarter.
Q3 2021 Improvements
Results from continuing operations for the third quarter of fiscal 2021 reflected an increase in higher-margin virus protection services. On both a GAAP and adjusted basis, the increase was driven by clients’ continued incorporation of disinfection into their operations. Quarterly results also benefitted from efficient management of direct labor and lower bad debt expense. The 2021 quarter also had one less workday as compared to the prior-year quarter. Higher corporate expenses contributed to the offsetting of these gains. These expenses primarily reflected planned investments in information technology. Higher personnel costs also offset the favorable factors from the prior year. This was a result of furlough and related cost-saving actions taken at the onset of the global pandemic.
Future Outlook for ABM Stock
The company reported a strong quarter, as evidenced by the strength of its financial reports for Q3 2021. ABM stock is poised to capitalize on the opportunities afforded to it as a result of the momentum it generated over the quarter. Current and potential investors are confident that management will be able to leverage the resources at its disposal. This is hoped to facilitate significant and sustained increases in shareholder value.
